Bei­jing re­mains Asia’s top spot for VC in­vest­ment

The Pak Banker - - BUSINESS -

Bei­jing is the most pop­u­lar desti­na­tion in Asia for ven­ture cap­i­tal in­vest­ment, fol­lowed by Shang­hai and Bom­bay, ac­cord­ing to a re­port re­leased by the Martin Pros­per­ity In­sti­tute.

It said that ven­ture cap­i­tal in­vest­ment to­taled $42 bil­lion glob­ally in more than 150 cities in 2012, which is the lat­est year for which fig­ures can be ob­tained in the sec­tor. The US west and east coasts, China, In­dia and Western Europe were the most ac­tive ar­eas.

San Fran­cisco, San Jose, Bos­ton, New York, Los An­ge­les and San Diego ranked as the top six in the world by deal value, and their to­tal in­vest­ment funds re­ceived ac­counted for 45 per­cent of the global amount, it said.

Bei­jing fi­nanced ven­ture cap­i­tal funds to­tal­ing $758 mil­lion, rank­ing first in Asia and ninth in the world by in­vest­ment value; Shang­hai ranked se­cond in Asia and 14th glob­ally. Bom­bay and Ban­ga­lore ranked 15th and 17th glob­ally, ac­cord­ing to the re­port.

"Ven­ture cap­i­tal de­vel­op­ment in China and In­dia is de­vel­op­ing rapidly, which proves that the VC sec­tor is un­der­go­ing re­port said.

"Bei­jing has a ma­ture ecosys­tem for en­trepreneur­ship, which at­tracts ven­ture cap­i­tal in­vest­ment," said Hu Boyu, found­ing part­ner of Bei­jing-based ven­ture cap­i­tal firm BlueLake Cap­i­tal.

Hu ex­plained that there are many top univer­si­ties and In­ter­net gi­ants in Bei­jing, and it is a rich source of skilled IT work­ers. Th­ese tal­ented staff may set up start-up com­pa­nies or be hired by them.

"In­flu­enced by Bei­jing, en­trepreneur­ship con­di­tions Shang­hai and Hangzhou are

glob­al­iza­tion,"

the the

in also im­prov­ing," said Hu. BlueLake Cap­i­tal has in­vested in 13 deals in the telecom­mu­ni­ca­tions, me­dia and tech­nol­ogy sec­tors, with in­vest­ment to­tal­ing around $80 mil­lion in the past one-and-a-half years, and 70 per­cent of them were in Bei­jing.

The re­port also said that per capita ven­ture cap­i­tal in­vest­ment in the US west and east coasts was large, while that in Asia and Europe was small. San Jose, San Fran­cisco and Bos­ton ranked as the top three cities by per capita in­vest­ment, while Bei­jing ranked 55th and Shang­hai was 74th.

"I re­main con­fi­dent in the ven­ture cap­i­tal de­vel­op­ment of China, es­pe­cially Bei­jing, in the com­ing years be­cause there are many in­no­va­tive com­pa­nies and the VC funds are am­ple," said Hu.

The re­port also showed there is a pos­i­tive cor­re­la­tion be­tween ven­ture cap­i­tal in­vest­ment and eco­nomic size of a city, but th­ese are not con­sis­tently re­lated to each other. For in­stance, New York, the world's largest city by eco­nomic size, only ranked fourth glob­ally by ven­ture cap­i­tal in­vest­ment, and San Fran­cisco, the world's largest ven­ture cap­i­tal ven­ture cen­ter, ranked 23rd in the world by eco­nomic size.

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